Considering Chapter 13 - how is the mortgage handled?

[holding on]

Hello, I'm considering Chapter 13 due to 5 month arrears on my mortgage. The final decision will be determined by if the lender gives me a hardship repayment plan that the loss mitigation dept is considering. I've done alot of research here (excellent help!) but am unclear on a few things.

How does a 13 really help you keep your house if the lender can just file
a motion of relief of stay 45 days after you file (or is it 45 days after your 341?) Is the reaffirmation supposed to handle this? In the tactical bankruptcy manual http://www.bankruptcyforum.com/showthread.php?t=6635 the author says he doesn't even sign reaffirmations cause of the new bk law. I've read in 13 you must be able to pay the arrears in 2 years, does the trustee handle that part totally or would your bk lawyer put that in the plan?

I believe I'll be able to pay all my unsecured debts in 5 years cause one of the means tests said I would have $1,621 surplus. So I'm hoping if I did have to file that would help in the eyes of the lender.

thanks in advance for any help!

[lrprn]

How does a 13 really help you keep your house if the lender can just file a motion of relief of stay 45 days after you file (or is it 45 days after your 341?)

Your mortgage lender cannot just file a motion for relief of stay because they want to. There has to be just cause - a missed mortgage payment after filing, for example.

Your plan payment will include the five missed months of payments and your trustee will pay them to your lender over the life of your Ch 13 plan so that when your plan ends in 3-5 years, you will have made up the arrearages. But you *must* pay your mortgage payments on time and *cannot* miss any mortgage payments during your Ch 13 or you will open the door to your lender filing for relief of stay with cause - a situation you definitely want to avoid.

[wayne-o]

I filed my 13 to save my house. The arrearages were included in the repayment plan as well as my regular monthly mortgage payment. The advantage is that you can pay the arrearages over time instead of right now like the mortgage company is asking.

However, if you fail to make your regular monthly mortgage payment after your plan is confirmed the mortgage company can and will file for a relief of stay.

[wayne-o]

oops lprn..I think we were typing at the same time.

OP LPRN's answer explains it better

[holding on]

Ahh I see! So the chapter 13 binds the mortgage company totally unless the debtor doesn't keep up with the regular mortgage payments from bankruptcy filing on (or if fraud or something like that was invovled). Just the answer I was looking for!

Thanks Lrprn and wayne-o!